Our use of cookies

Options

Back

We use cookies to help our site work, to understand how it is used, and to tailor the adverts presented on our site. By clicking “Accept” below, you agree to us doing so. You can read more in our
cookie notice. Or, if you do not agree, you can click Manage below to access other choices.

You can choose whether or not to accept advertising cookies from our advertising partner Google using the buttons below. If you choose not to, you will still see adverts on our site, because they help us to fund it, but those adverts will not be tailored to you. You can also choose not to accept session and analytics cookies through the settings in your browser, but some parts of our site might stop working as a result. You can also learn more in our
cookie notice.

Exeter's Rusty Bike is closing because it cannot survive increasing rates and city centre chains

Increasing rates and chains have forced the eatery to close its doors

Share

by Alex Richards

00:00, 21 Feb 2017Updated18:30, 14 Aug 2017

Enter your postcode to see news and information near you

Community updates, Crime Statistics, Local News & Events and much more...

The Rusty Bike has been at Howell Road since 2009

Exeter restaurant The Rusty Bike will be closed and turned into a four-bed family home for its owner.

Father-of-two Hamish Lothian said closing the Howell Road restaurant will ensure that the rest of the group, which includes The Fat Pig, Tabac, The Pig & Pickle and a spirits distillery, can "survive and thrive."

Replacing the derelict Eagle Tavern in 2009, it was the second venue for the Fat Pig business and prided itself on a locally sourced menu. It will close for good on East Sunday.

The closure will see all its kitchen staff, including head chef Darren Jory who trained with Marco Pierre White, lose their jobs. The majority of bar staff will move into the other pubs.

The Rusty Bike has been at Howell Road since 2009

However, Mr Lothian believes it is a "sensible decision" in the face of a tough market.

"By closing it and turning it into my house I can get a domestic mortgage on it which I can afford to pay.

"The decision to close Rusty Bike is because you need to turn over so much money to make it pay, and when we opened we just one of a dozen restaurants doing that thing in the city. Now in the past year 20 plus have opened.

"After Rusty, Cote Brasserie came, Bill's came, Samuel Jones at the quay came, and then this whole Queen Street development and it just goes on and on and on and on. It nibbles the edges off until there's nothing left.

Read More

"The thing about the Rusty is it's not a cheap operation. We take entire animals and turn them into food, we cannot benefit from any of those economies of scale the larger operators can.

"It is a hard and brave decision to close a restaurant before it bankrupts you. You can't let it take the rest of the business down with it because it's having the margins shaved away everywhere.

"The sensible thing to do is give it in now rather than continue to trade and make a loss."

The increasing business rates have had a major role to play in his decision. His other units are small, and run with a crew of two or three staff members.

He added: "The thing about big unit like the Rusty Bike with a brigade of chefs – it's an expensive toy."

But even then, the small floor space of The Fat Pig on Smythen Street has a whopping rateable value of £27,000 a year - around £540 per square metre.

The announcement will come as a blow to many in the city's foodie community.

Its highly skilled kitchen staff have earned themselves a place in the Michelin guide and the Trencherman's guide.

The closure has highlighted again the city's current tug-of-war between national companies and independent businesses - which are having to shout loudly to survive.

The announcement that Urban Burger on Queen Street is for sale shocked many when it was revealed two week's ago.

Mr Lothian added: "Look at the profile of the city, every boozer on the peripheral has changed hands or is on the market.

"The guys on the outskirts are under a lot of pressure from the new openings in the city centre."

Urban Burger owners Owners Garth and Melissa Pearse said say are frustrated about the lack of diversity in the city's bustling food scene, and independent chains paying extortionate rates in comparison to national chains.

They criticised Exeter City Council for their planning decisions and aid they offer independent businesses.

Melissa added: "The council should have taken care when approving these restaurants, rather than allow them all to arrive in one big hit.

"Out of the big chains, very few including The Stable use local produce, the rest obtain their ingredients from central distribution.

"This has a massive knock-on effect on local businesses, and all serves to turn Exeter into another faceless city in the UK.

Rob Weeks, Circa 1924, is all for backing his fellow independent restaurants.

"It's a shame to see the owners of Urban Burger move on after Ruby's down the road did the same.

"It was interesting to see the increase in business rates they are facing, as it is something that all of us are seeing,

"We put ourselves at the higher end of the market, so at the moment we are definitely seeing a lot of positives about having a livelier city centre – which doesn't turn to blowing tumbleweed after 5pm.

"From that perspective our trade is doing well, but in terms of the offer – a lot are opening set at the same price point and the same types of food.

Read More

"They have all become amazingly efficient at getting their product across, as they have massive marketing budgets at their disposal.

"So customers are buying into that, but when they are sitting down to eat they are going to feel conned by the inferior quality of food.

"Exeter is at the heart of Devon which is one of the best places in the UK for sourcing food.

"National chains are getting their produce at low cost from massive dealers in Birmingham. Hopefully more good indies see a gap in the market and open up.

"I don't want to be overly critical to the city council but they could do more to offset rates and council tax for smaller businesses, and offer a hand with marketing."

The city council responded by saying they work hard to ensure that Exeter maintains a good offering of restaurants and eateries.

"Part of Exeter's appeal as a vibrant city is its mix of restaurants, from fantastic independents to recognised High Street names, and we welcome the increasing diversity of food on offer," said Cllr Rosie Denham, Lead Councillor for Economy.

"We have no powers to dictate which businesses come to the city, but we work hard to make sure Exeter is an attractive place for businesses to invest and create jobs."

On business rates, Cllr Denham added, "The City Council has no say in setting business rates, which are set nationally by the Government, however there are a number of rates relief schemes available for small businesses."

Craig Bulley, chief executive of Exeter BID, said: "Exeter BID is proud to support the diverse offer of independent businesses and national brands that the city has to offer to residents and visitors, reflecting Exeter's status as the retail destination of the South West."